Retail sales rise 6.3 percent with strong online platform performances

Economy

Retail sales rise 6.3 percent with strong online platform performances

Published: 27 Aug. 2024, 18:26

Coupang delivery trucks at a parking lot in Seoul [YONHAP]

Retail sales in Korea rose 6.3 percent on year in July on the back of strong performances of online platforms, though offline stores logged a sales decline amid unfavorable weather conditions, the Industry Ministry said Tuesday.

The combined sales of 23 major offline and online retailers came to 14.8 trillion won ($11.13 billion) last month, compared to 13.9 trillion won a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy.

Sales on online platforms advanced 16.9 percent to 7.57 trillion won as online shopping for daily necessities and services has become commonplace.

In detail, food sales on online platforms went up 21 percent, and demand for services soared 61.6 percent in July.

Online platforms have reported double-digit sales growth since September 2023.

But offline retailers suffered a decline in sales due to unfavorable weather conditions and the fewer number of weekends in July this year compared to a year ago, according to the ministry.

Sales of offline retailers fell 3 percent to 7.18 trillion won.

Department stores saw their sales fall 6.4 percent, and sales at discount chain stores, such as E-Mart and Lotte Mart, sank 7.9 percent on year.

But convenience stores reported 2.9 percent sales growth, and those of smaller supermarkets inched up 1.4 percent.

By item, demand for electronics and cultural items dropped 13.2 percent, and goods for children and sports went down 9.3 percent at offline stores.

Online platforms accounted for 51.3 percent of total sales in July, up from 46.7 percent a year earlier, the data showed.

The ministry used to analyze sales of 25 online and offline retail entities for its monthly report on retail sales, but the July report excluded the two e-commerce platforms WeMakePrice and TMON amid their delayed payment troubles, officials said.

Yonhap